Mindtell Tech has unveiled a non-underwritten rights issue on the basis of one rights share for every existing share held on 3 June 2026, targeting gross proceeds of up to HK$280.80 million.

The subscription price is set at HK$0.60 per rights share, representing a 40.60% discount to the HK$1.01 closing price on 16 February 2026, the last trading day before the announcement. A total of 468.00 million new shares—equivalent to 100.00% of the current issued share capital and 50.00% of the enlarged share base—may be issued. Net proceeds are estimated at HK$275.20 million, or roughly HK$0.59 per rights share after expenses.

Management intends to allocate about HK$55.00 million (20.0%) to upgrade hardware and analytics capability for existing NS3 and CUSTPRO platforms, HK$165.10 million (60.0%) to expand R&D capacity and data-centre infrastructure in Mainland China, and HK$55.00 million (20.0%) to general working capital and project integration costs.

The rights issue will proceed irrespective of subscription level. Unsubscribed shares will be placed on a best-effort basis by VBG Capital; any premium over costs will be returned to non-participating and excluded shareholders. Rights not placed will be cancelled, reducing the issue size accordingly.

Completion is conditional upon independent shareholders’ approval at an extraordinary general meeting on 21 May 2026 and the Stock Exchange granting listing approval. Controlling shareholders Delicate Edge and King Nordic, together holding 42.00% of issued shares, will abstain from voting.

If fully subscribed, the theoretical dilution effect is 21.70%, while a shareholder who does not take up any entitlement will see its stake halved to 50% of its current level. Nil-paid rights trading is scheduled from 8 June to 15 June 2026, with final allotment results expected on 13 July 2026 and dealings in fully paid shares commencing 15 July 2026.